Section 146

Section 146 of the Indian Contract Act, 1872, states that 'the authority of an agent may be expressed or implied.' This means that an agent's authority can be either express or implied. Express authority is given by the principal to the agent in explicit terms, whereas implied authority arises from the circumstances of the case, the conduct of the parties, and the ordinary course of dealing. The section emphasizes the importance of understanding the scope of an agent's authority, as an agent's actions are binding on the principal only to the extent of his authority. The courts have interpreted this section to mean that an agent's implied authority is not limited to the specific tasks assigned to him but also extends to all such acts as are reasonably necessary to carry out his duties.